NAA: A4940, C3368 PART 4

London, 1 February 1963

Confidential

[ ... ]

We must clearly keep in as close personal touch as we can in the difficult situation brought about by the French. It is still too early to judge how things are going to develop. The other members of the EEC are certainly very angry with the French and at present in no mood to carry forward the development of the Community. It may be that after a time we could resume negotiations but we have to face the possibility that the Five may be unable to resist the French and that the latter may progressively succeed in imposing their views and policies on their fellow members of the Community. They may try to obstruct the Kennedy round on tariffs.

We are determined to push ahead as vigorously as possible here with the policies of economic growth and expanding trade which the situation demands and I know that we can count on your help and support. We must as I say keep in close touch on these matters and also about the broad political and strategic problems which the French policies may now throw up which may prove very dangerous. Suggestions are being made here for an early Commonwealth conference to be summoned but I doubt whether such a conference at this stage would be useful. It may lead our people to suppose, as I believe quite wrongly, that the Commonwealth and the closer links with Europe which we have been seeking are in some sense alternatives. It might also give the impression that we here can solve our difficulties by calling conferences rather than by working harder and by making ourselves more competitive. I broadcast in London last night with a view to holding the situation here so that we have a little time to consider what to do next.

I should very much welcome your views on all these problems. If you agree with my analysis I hope you could see your way to letting it be known that in your judgment the best way to maintain Commonwealth consultation at present is by means of close and continuing bilateral exchanges.

I have sent rather similar messages to Holyoake and Diefenbaker.